Wholesale energy prices in the UK have risen substantially. This has been driven by a number of factors.
- Fluctuations in temperature. We had several very cold spells - “Beast from the East”- prompting high use of heating in winter (which used a lot of energy) and then a very hot summer resulted in high use of air conditioning (again, using more energy).
- Weak wind. Last year generation from renewable sources, such as solar and wind, was very strong. This year wind output as a source of generation has been relatively weak, though solar output has been stronger (but only during the day).
So we used more energy across the UK this year, but have not been able to generate as much from wind power. This put pressure on producing energy from gas. Gas fired power stations are one of the most flexible ways to generate electricity, and are preferred over coal stations which have mostly closed.